A new public school in Knoxville is proposed and will replace one older facility and affect school changes for several middle school students. The following estimates apply:

a. Calculate the \(B / C\) ratio.

b. Calculate \(B-C\).

c. Mistakenly treating disbenefits as costs and savings as benefits, recalculate \(B / C\).

d. Mistakenly treating disbenefits as costs and savings as benefits, recalculate \(B-C\).

e. Set benefits to the value that makes (benefits-disbenefits) equal to (costs-savings) and repeat Parts a-d. What can you say about your new values of a-d?

f. When the \(B / C\) ratio in Part a is 1.0 , what is the \(B / C\) ratio in Part \(c\) ?
g. Which is easier to explain, \(B / C\) or \(B-C\) ?

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Category Amount in $/Year Benefits 2,350,000 Disbenefits 1,640,000 Costs 1,800,000 Savings 1,450,000